Sentinel Inc. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $50,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point. These sales values are as follows: Product X, $25,000; Product Y, $45,000; and Product Z, $30,000. Each product may be sold at the split-off point or processed further. The additional processing costs and the sales value after further processing for each product (on an annual basis) are as follows:

	Product X		Product Y		Product Z
Additional processing costs	$	10,000	$	32,000	$	6,000
Sales value (after further processing)		40,000		75,000		37,000

Which of the product/s should the company be processing further?

Product X and Y

Product X

Products Y and Z

Product X and Z